Top 5 Most Expensive States for Car Insurance Rates

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Driving may be one of the most convenient ways to get from point A to point B, but you pay a premium for that convenience: car insurance. And depending on where you live, that could mean paying hundreds of dollars a month for coverage.

Here are the five states that charge the most for basic car insurance and steps you can take to lower your rates.

The five most expensive states for car insurance rates

The average American paid $251 per month for car insurance in 2023. However, if you live in one of the most expensive states for car insurance, you could pay between $104 and $522 per month, depending on how much coverage you get:

Data source: Motley Fool Money.

Note that this ranking is based on minimum coverage rates. And minimum insurance requirements can vary from state to state, so some drivers may receive more coverage than others, even though both policies fall under the “minimum insurance” umbrella.

All but one of these states (Delaware) are no-fault states, where premiums tend to be higher than in states that do not have this law. No-fault states require drivers to file a claim with their own insurer in the event of an accident, regardless of who is at fault.

And from a regional perspective, most of these states are in the south (Florida) or east (Delaware, New Jersey and New York) of the country.

Do you need affordable car insurance? Check out our list of the cheapest car insurance in 2024.

Factors that can help you get cheaper car insurance rates

Here are some factors that affect your car insurance rates that drivers can control, or at least make progress on:

• Driving report: While they can’t help if you’ve had accidents in the past, driving safely and participating in driver safety programs offered by insurers can help lower your rates.

• Car make and model: Consider switching to a car with a better safety record or adding safety features to your vehicle to lower your rates.

• Type and amount of coverage: Minimum coverages tend to cost less than more robust coverages. However, make sure you can afford your deductibles no matter which option you choose, as they can mean the difference between getting your car repaired quickly or having to wait months to get it back on the road.

• Credit: Better credit often leads to better car insurance rates. This is where paying off debts, making timely payments to creditors and keeping old credit cards open can be helpful.

The best car insurance may not always be the cheapest option, but it should fit within your budget. Finding quotes is the best first step in figuring out how much insurance coverage you can afford.

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